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New Member
posted Feb 27, 2022 6:29:11 PM

I forgot to rollover my 401k but haven't cashed the distribution check. Does the IRS know I never rolled over my 401k and that is why my tax return is so low this year?

I changed jobs and received a 1099-R months after I missed the 30 day direct rollover time period for my 401k with Distribution Code "G", indicating a direct rollover. As mentioned, I haven't cashed the check or rolled it over to a plan but my tax return is significantly lower than what it should be. I was curious if I'm being penalized for early withdraw and if I am, if the IRS is taking it out of my tax refund? Additionally, the amount is less than $2,000 and I am younger than 59 1/2.

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2 Replies
Expert Alumni
Feb 27, 2022 6:45:28 PM

The IRS only knows what is reported to them.   How what is the date of the check, oftentimes these checks are only good for like 90 days.   Your 1099-R says it is a rollover.   Rollover has no tax consequences.    The IRS does not know if you cashed the check or not.   The fact that you never rolled over the funds or cashed the check, I am not sure what happens going forward.   My suggestion is that you go back to the place that issued your check and talk with them.    

 

Level 15
Feb 28, 2022 4:06:58 AM

You got an incorrect 1099-R.

Maybe your former employer is trying to do you a tax favor.